Improving credit rating from scratch

Russinating

Russinating

Russinating

Soldato
Joined
27 Dec 2005
Posts
17,316
Location
Bristol
I'm moving flat and my to-be-landlady requested that I have a credit check (which I've had to pay for, cheeky). Anyway, I failed it because I basically don't have one - I've never had a credit card, have rented for the past 20 months (two different places) and have had no credit and am in no debt whatsoever apart from my student loan.

On top of that, I run a partnership so don't have an employer or a fixed income, and have been doing so for less than 3 years.

Despite this I haven't been a day late with my rent in 2 years (plus the 3 years at uni) and the new place is cheaper than my current rent, though clearly this is of no interest to my future landlady :rolleyes:.

With all this mind, how do I go about building up my credit rating from scratch? The only thing I've ever applied for has been a Topman card (bought a suit, they were offering 25% off if I signed up, etc) but that got declined so my worry is how do I get a credit rating if I can't even get crappy credit in the first place?

I've been looking on MoneySavingExpert but I have no idea what kind of credit is good or which cards are easy to get.

PS. I am well aware of how credit cards work which is why I've never had or needed one. I'd be repaying in full every month and would only want to use it for something that builds my rating as effectively as possible (like sticking my £40 mobile bill on it and paying that off via DD).

TLDR:

  1. What are the easiest credit cards to get with no rating?
  2. What payment/billing activity improves your credit rating most effectively?

Thanks in advance :).
 
I just got one from my bank, they gave it to me pretty much no questions asked, I wasn't employed at the time.

Try your bank.
 
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Your own bank may be an easy choice for a card.

Else Capital One should be able to issue one.

Getting a mobile phone contract adds entries to your file.
 
Definitely go for your own. Just make a few purchases each month, no more than a couple hundred, and pay the balance off in full. With yuor history it won't take long to build up a good rating.
 
I did this 2-2.5 years ago & now have a great credit rating.

I did mine via a credit card & pay monthly phone. I also registred with Experian/Credit Expert so that I could keep track of my a/cs. As long as you don't make late payments everything will work out fine, it just takes time.

Also, everytime you have a creditsearch & fail you score reduces. So if you fail once don't keep applying for things. So regarding a credit card like others have suggested try your own bank. You have a track record with them & they are likely to be more understanding, as each lender tends to have their own scoring system.

I really would recommend Credit Expert & its full of info on credit reports & scores. How to improve them etc.
 
Pretty much anything that involves a retrospective direct debit payment (gym membership, mobile phone, landline, ISP, car insurance, buy-now pay-later, etc etc).

They will all have a positive impact on your credit rating assuming you pay without fail every month.

If you are going to go down the mobile phone contract route, three are typically the most accommodating for people with adverse credit or lack of history.
 
Best way to get a "good" credit record is to get a credit card and a small loan (£500 or so) from your bank paid off promptly and on time. Tho that will take a few months to build up. Credit card alone may go a long way.

While it won't help with a landlord - ironically the way to get an attractive credit record for lenders, etc. is to not pay up on time - but pay up eventually :D you will actually have a "better" credit record than someone who pays up on time every time without fail.
 
most important is electroll roll, get a current account then a credit card from your bank. Never miss payments.
 
Since you're on the electoral roll and you've had a mobile phone contract reliably, you're probably fine for an entry-level card. Cards to look at are Barclaycard Initial, Capital One Classic and Progress and Vanquis card.

The comparison site Money Extra uses a tool called HD Solutions that does essentially a pre-credit check to point you in the right direction. It's not 100% accurate - they don't have access to card issuers' acceptance policies - but it should help you choose which card is the best for you.
 
The bank I work at apparently base lending decisions for loans, credit cards etc (basic lending, not mortgages) at least partially on your current account activity. If your wages go in on the 31st and your balance is back down to zero a couple of days later, it'll lessen your chance of getting lending. On the other hand, if you always maintain a positive balance in a way that could be seen as responsible, you're more likely to get a card or loan.

So in short, speak to your bank as mentioned above.
 
Just to note that repaying in full every month is worse for your credit rating than leaving a small balance on there. Banks score you worse for paying off in full because they make no money from you.
 
Moredhel said:
Just to note that repaying in full every month is worse for your credit rating than leaving a small balance on there. Banks score you worse for paying off in full because they make no money from you.
Click to expand...

That isn't the case for many products, if you're taking out a mortgage or loan the only thing that matters is that you paid your cc balance on time.
 
Ive been in an overdraft for about 5 years, got a small loan with the bank thats always paid.
Always been refused credit and credit cards, the house i live in is listed somewhere so i think thats my main problem, but still, no hope for me yet!
 
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